Divorce is a complex financial transaction requiring a CPA's strategic expertise. Proactive tax guidance is crucial for sound settlements. Explore the divorce tax landscape, asset preservation, liability prevention and equitable property distribution.
DESIGNED FOR
CPAs and accounting professionals in public practice and industry who advise individuals and closely held businesses on tax matters
BENEFITS
- Understand Circular 230 and AICPA Code requirements; identify and avoid conflicts in divorce tax engagements.
- Apply the IRC Section 152(e) "nights test" to determine custodial parent; recognize limits of Form 8332 transfers.
- Evaluate Section 1041 nonrecognition rules; quantify deferred tax effects and preserve carryover basis in property divisions.
- Assess retirement division methods; differentiate between QDRO and IRA tax treatments; understand alimony tax changes under TCJA.
HIGHLIGHTS
Since the Tax Cuts and Jobs Act of 2017 repealed the alimony deduction for divorce agreements executed after Dec. 31, 2018, the landscape of divorce negotiations has changed significantly. CPAs must master rules for deferred tax liabilities (IRC Section 1041), dependency claims (IRC Section 152(e)) and joint tax attribute allocation. Practitioners will also gain mastery over ethical challenges in divorce engagements, adhering to AICPA and Treasury Circular 230 standards.